Find out if your Department is overpaying

The answer is in your invoices.

By Jeppe Jørgensen, Founder — Onpoint

Why most teams overpay without knowing it

You buy the same things again and again.

But you don’t know:

  • what others pay
  • whether prices have changed
  • whether you could get a better deal

Prices are buried in invoices.

And they’re rarely compared.

The result:

You can easily be paying 10-20% more - without noticing.

Where Price differences come from

Price differences usually come from:

  • Same item, different price Same supplier. Same product. Different price over time.
  • Multiple suppliers The same item bought from different vendors - at different prices.
  • No renegotiation Prices change, but contracts don’t.
  • Volume effects Unit prices drop with higher volume - but this isn’t always used.

How to find Price differences in your Invoices

1

Look at line-level Prices

Totals hide differences. You need: • unit price • quantity • item

2

Compare like-for-like purchases

Find the same items across: • suppliers • time This is where differences show up.

3

Focus on what matters

Look for: • high volume • large price gaps Small differences don’t matter much. Large, repeated ones do.

4

Use it

Once you see the differences, you can: • negotiate • switch suppliers • consolidate spend

What realistic savings look like

Typical savings:

  • 5-10% on stable agreements
  • 10-20% where prices vary
  • more if there’s been no focus before

You don’t need new suppliers.

You need visibility.

Summary

  • Prices vary more than you think
  • The differences are in your invoices
  • You need line-level data to see them
  • Once you see them, you can act

Frequently asked questions

How do I know if I’m overpaying?

Compare what you pay for the same item across suppliers, time, or departments. Price differences usually show up quickly in invoice data.

Why do prices differ for the same item?

Because of contracts, volume, negotiation timing, and supplier relationships. Identical items are rarely priced identically.

How big are typical price differences?

Often 10-30%, sometimes more. Even small differences add up quickly across recurring spend.

Where should I look first?

Start with high-volume or recurring purchases. That’s where small price gaps have the biggest impact.

What do I do once I find a price gap?

Use it as leverage - renegotiate, switch supplier, or standardize purchasing.

Related resources

Visibility

See what your Department actually spent - without asking Finance

Build the right baseline first.

Diagnosis

My Department is over Budget. How do I find out why?

Understand what is driving variance.

Planning

Set next year’s Budget based on what you actually spent

Use what you learned to improve planning.

Find Price differences - and act on them

Compare prices across suppliers, items, and time

Use Onpoint FreeSee how it works